China’s purchasing spree of new crop soybeans from the U.S. is picking up steam as Chinese crushers take advantage of price deals and work to feed a growing livestock industry.

Chinese buyers have contracted to buy 588,000 metric tons of soybeans for delivery in 2020-21, according to the latest USDA daily export sales report released Monday. It follows closely on the heels of a string of daily sales reports of new crop purchases by China. They include a sale of 456,000 metric tons on Friday, 126,000 tons on Thursday and 192,000 tons on Wednesday.

John Baize, an analyst for the U.S. Soybean Export Council, says the accelerated purchases by China show what he has been predicting: China needs the soybeans for its growing livestock operations as the country rebuilds its swine herd.

“It makes total sense,” Baize said Monday. “They’re buying what they need and it’s driven by commercial interest. They need the soybeans.”

And the buying is going to continue, he stressed. The big purchases announced Friday and Monday were likely by large Chinese state-owned crushers, but smaller, privately held companies are also in a rush to buy more.

“I expect to see more tomorrow and the next day,” Baize said.

And beyond that, China is likely to buy as much as 30 million tons of U.S. soybeans in the final four months of the year as well as more in January before the flood of soybeans from Brazil’s next harvest begins hitting the international market, the USSEC analyst said.

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There are still available soybeans in Brazil, but supplies are running tight and U.S. soybeans are cheaper. U.S. soybeans for delivery to China, freight on board, are selling for $360 per ton out of the Gulf and $374 per ton out of the Pacific Northwest, Baize said. The comparable price for Brazilian soybeans is $384.

“We’ve really got a five-month window,” he said, “and we’re going to sell a lot.”

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